A mortgage that can be paid off in full or in part at any time without penalty. Open mortgages carry higher interest rates than closed mortgages to compensate for this flexibility. They're useful for borrowers who expect to sell soon, receive a lump sum, or refinance in the near term.
Related Articles
- Best Mortgage Rates in Windsor Ontario (2026)
Get the best mortgage rates in Windsor, Ontario. Compare bank vs broker rates, learn what affects your rate, and find current fixed and variable options.
- Open vs Closed Mortgages for Real Estate Investors
Compare open and closed mortgages for Canadian investors. Weigh prepayment flexibility, rate differences, and penalties to pick the right fit.
← Mortgage & Real Estate Glossary 2026 · Editorial standards